The Office of the U.S. Trade Representative (USTR) is considering the possible reinstatement of hundreds of previously expired China Section 301 tariff exclusions. The exclusions, which expired on December 31, 2020, cover 549 products and span Lists 1, 2, 3 and 4A.
The full list of covered products can be found here.
The USTR is seeking comments on whether to reinstate the exclusions, and if so, for how long. Comments from U.S. stakeholders or interested third parties will be accepted from October 12 through December 1, 2021. Comments must be submitted electronically via the USTR portal located at www.comments.USTR.gov and should address the following points:
- The value and quantity of the product purchased from China over the last three years
- Whether the Chinese-origin product is sold as a final product or an input
- Whether Chinese suppliers have lowered their prices for products covered by the exclusion following the imposition of duties
- Whether the product is subject to an antidumping or countervailing duty order issued by the U.S. Department of Commerce
- Whether the product or a comparable product is available from sources in the U.S. or third countries
- Any efforts you have undertaken since September 2018 to source the product from the U.S. or third countries
- The value and quantity of the product purchased domestically or from third country sources over the last three years
- For domestic producers, your capacity for producing the product in the U.S., your efforts to produce domestically, and any constraints to domestic production
- Whether you support or oppose reinstating the exclusions as well as an explanation of the rationale used in reaching your opinion
- If you support reinstating the exclusions, how long
- Whether the additional Section 301 tariffs had an impact on employment at your company
- Whether or not reinstating the exclusion will result in severe economic harm to the commenter or other U.S. interests
- Any other relevant information or data in support of or opposition to reinstating the exclusion.
Please be aware that parties seeking to comment on more than one exclusion must submit a separate comment for each exclusion requested.
The USTR states that any “exclusions reinstated pursuant to this review would be retroactive with respect to merchandise entered, or withdrawn from warehouse, for consumption on or after the opening of the docket on October 12, 2021.” Importers should be aware that reinstated exclusions will only be accepted for unliquidated entries for goods that enter the U.S. on or after October 12.
Decisions on reinstatement will be made on a case-by-case basis and will be based on a variety of factors, including product availability from countries other than China, the impact on U.S. interests (including small businesses, employment, manufacturing output, and critical supply chains in the U.S.), and the overall impact of the exclusions on the goal of eliminating the China’s unfair practices related to technology transfer, intellectual property, and innovation.
The Federal Register Notice, which includes complete details of the possible reinstatement, can be found here.
If you would like to receive additional information regarding the comment process or assistance in commenting, please contact a member of our Compliance Department at Compliance@oceanair.net.
OCEANAIR will continue to monitor the China Section 301 tariffs and provide status updates on our China Section 301 Tariff Updates page.
